TO: Mayor and Members of City Council
THRU: Jodi Phelps, Assistant City Manager
FROM: Christopher Cauley, MPA, Director, Economic and Community Development
DATE: March 9, 2026
RE:Title
Agreement with Cumberland County for Joint Funding of Year-Round Temporary Emergency Shelter
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COUNCIL DISTRICT(S):
Council District(s)
All
b
Relationship To Strategic Plan:
Goal IV: The City of Fayetteville will be a desirable place to live, work, and recreate.
• Objective 4.6: To reduce poverty and homelessness.
Executive Summary:
Council is asked to authorize the City Manager to execute an agreement with Cumberland County for joint funding of a year-round temporary emergency shelter.
Background:
The Salvation Army of the Sandhills has historically provided overnight shelter services, including 67 beds and White Flag sheltering when Cumberland County Emergency Management determines that overnight temperatures with wind chills are expected to fall below 32 degrees. On April 15, 2025, The Salvation Army’s Pathways of Hope Shelter abruptly ceased operations, leaving the community without an overnight emergency shelter.
Emergency shelter serves as a critical resource for individuals experiencing homelessness, providing immediate safety and connection to supportive services. The closure of The Salvation Army’s Pathways of Hope Shelter significantly reduced available overnight shelter capacity in the community and increased demand on other local providers serving unsheltered residents.
On December 15, 2025, the Cumberland County Board of Commissioners approved authorizing the County Manager to move forward with contract negotiations at a cost not to exceed $1,000,000 to support the continuation of emergency shelter services at The Salvation Army. The County requested that the City Council consider participating in the funding effort. Any contribution provided by the City would reduce the total amount funded by the County.
Issues/Analysis:
The City may enter into an agreement with Cumberland County to reimburse the County at regular intervals for costs incurred through its agreement with The Salvation Army for the operation of a year-round temporary emergency shelter. The City’s contribution would be structured as a percentage of the County’s $1,000,000 commitment. Staff recommends that the City fund 30% of the annual shelter costs, not to exceed $300,000 annually.
Should Council approve this action, staff will work with Cumberland County to finalize an agreement consistent with Council’s direction.
Budget Impact:
The City receives approximately $150,000 annually through the Emergency Solutions Grants (ESG) program. Of this amount, approximately $83,000 may be used for Street Outreach or Emergency Shelter activities. However, the City’s ability to reimburse Cumberland County for emergency shelter costs associated with The Salvation Army using ESG funds is not yet clear. As a result, staff recommends utilizing General Fund resources for this effort, with the potential to allocate ESG funds in future fiscal years if allowable.
If approved, the full annual contribution of up to $300,000 would need to be identified within the General Fund and would likely require subsequent City Council action to appropriate the necessary funds. For the remainder of Fiscal Year 2026, the estimated cost would be approximately $100,000, based on a contribution of $25,000 per month for the remaining four months of the fiscal year.
Options:
• Authorize the City Manager to execute an agreement with Cumberland County for joint funding of a year-round temporary emergency shelter, appropriate $100,000 of general fund balance, and the corresponding budget and financial actions.
• Do not authorize the City Manager to execute an agreement with Cumberland County for joint funding of a year-round temporary emergency shelter, appropriate $100,000 of general fund balance, and the corresponding budget and financial actions.
• Direct Staff to some other action.
Recommended Action::Recommended Action
Authorize the City Manager to execute an agreement with Cumberland County for joint funding of a year-round temporary emergency shelter, appropriate $100,000 of general fund balance, and the corresponding budget and financial actions.
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Attachments:
None.